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Chapter 5Chapter 5

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W hat is Perception and W hy isW hat is Perception and W hy is

it Important?it Important? Perception is a process by whichPerception is a process by which

individuals organize and interpret their individuals organize and interpret their

sensory impressions in order to givesensory impressions in order to givemeaningmeaning to their environment.to their environment. Its important becauseIts important because peoples behavior ispeoples behavior is

based on their perception of what realitybased on their perception of what realityisis ,, not on reality itself not on reality itself. .

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F actorsF actors

The Perceiver The Perceiver attitudes, motives,attitudes, motives,interests, experiences, expectationsinterests, experiences, expectations

The TargetThe Target novelty, motions, sounds,novelty, motions, sounds,size, background, proximity, similaritysize, background, proximity, similarity The SituationThe Situation time, work setting, socialtime, work setting, social

situationsituation

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A ttribution Theory A ttribution Theory

F undamental A ttribution Error F undamental A ttribution Error The tendency toThe tendency to

UnderestimateUnderestimate the influence of the influence of externalexternalfactors (outside of a persons control)factors (outside of a persons control)OOverestimateverestimate the influence of the influence of internalinternal (what(whatyou can control) factorsyou can control) factors

W hen making judgments about the behavior of W hen making judgments about the behavior of others.others.

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A ttributions A ttributions

Self Self--Serving BiasServing Bias

The tendency for individuals to attributeThe tendency for individuals to attributetheir their ownown successes tosuccesses to internalinternal factorsfactorswhile putting the blame for failures onwhile putting the blame for failures on

external factors.external factors.

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Sample ShortcutsSample ShortcutsSelective PerceptionSelective Perception

People selectively interpret what they see on the basis of People selectively interpret what they see on the basis of their interest, background, experience, and attitudes.their interest, background, experience, and attitudes.

Halo EffectHalo Effect Drawing a general impression about an individual on theDrawing a general impression about an individual on the

basis of a single characteristic.basis of a single characteristic.

Contrast EffectsContrast Effects Comparisons with other people recently encounteredComparisons with other people recently encounteredwho rank higher or lower on the same characteristics.who rank higher or lower on the same characteristics.

ProjectionProjection A ttributing ones own characteristics to other people A ttributing ones own characteristics to other people

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Specific A pplications inSpecific A pplications in

OrganizationsOrganizations Employment InterviewEmployment InterviewPerceptual biases affect the accuracy of interviewersPerceptual biases affect the accuracy of interviewers

judgments of applicants. judgments of applicants.

Performance ExpectationsPerformance ExpectationsSelf Self--fulfilling prophecy (fulfilling prophecy ( pygmalion effect pygmalion effect ): The lower ): The lower or higher performance of employees reflectsor higher performance of employees reflectspreconceived expectations about employeepreconceived expectations about employeecapabilities.capabilities.

Performance EvaluationsPerformance EvaluationsA ppraisals are subjective perceptions of performance. A ppraisals are subjective perceptions of performance.

Employee EffortEmployee EffortA

ssessment of individual effort is a subjective A

ssessment of individual effort is a subjective judgment subject to perceptual distortion and bias. judgment subject to perceptual distortion and bias.

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A ssumptions of the Rational A ssumptions of the Rational

DecisionDecision- -Making ModelMaking Model1. Problem clarity

2. Known options

3. Clear preferences

4. Constantpreferences

5. No time or costconstraints

6. Maximum payoff

1. Problem clarity

2. Known options

3. Clear preferences

4. Constantpreferences

5. No time or costconstraints

6. Maximum payoff

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So, how are decisionsSo, how are decisions actuallyactuallymade in organizations?made in organizations?

Bounded RationalityBounded RationalityIndividuals make decisions byIndividuals make decisions by

constructing simplifiedconstructing simplified modelsmodels thatthatextract the essential features fromextract the essential features fromproblemsproblems withoutwithout capturingcapturing allall their their complexity.complexity.

Intuitive Decision MakingIntuitive Decision MakingIntuition = an unconsciousIntuition = an unconscious

process created out of distilledprocess created out of distilled

experience.experience.

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Problems? W hat Problems?Problems? W hat Problems? How and why are some problemsHow and why are some problems

identified?identified?Visibility over importance of problemVisibility over importance of problem

A ttention A ttention- -catching, high profile problemscatching, high profile problemsDesire to solve problemsDesire to solve problems

Self Self--interest (if problem concerns decisioninterest (if problem concerns decisionmaker!)maker!)

A lternative Development A lternative DevelopmentG ood enoughG ood enough : seeking the first alternative: seeking the first alternativethat solves problem.that solves problem.

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Organizational Constraints onOrganizational Constraints on

Decision MakersDecision Makers Performance EvaluationPerformance EvaluationEvaluation criteria influence the choice of actions.Evaluation criteria influence the choice of actions.

Reward SystemsReward Systems

Decision makers make action choices that areDecision makers make action choices that arefavored by the organization.favored by the organization.

F ormal RegulationsF ormal RegulationsOrganizational rules and policies limit the alternativeOrganizational rules and policies limit the alternative

choices of decision makers.choices of decision makers. SystemSystem- -imposed Time Constraintsimposed Time Constraints

Organizations require decisions by specific deadlines.Organizations require decisions by specific deadlines. Historical PrecedentsHistorical Precedents

Past decisions influence current decisions.Past decisions influence current decisions.

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Summary and Implications for Summary and Implications for ManagersManagers

PerceptionPerception

-- Individuals behave based on what they see or believeIndividuals behave based on what they see or believe

reality to be.reality to be.-- Evidence suggests that what individualsEvidence suggests that what individuals perceive perceive fromfrom

their work situation will influence their productivity moretheir work situation will influence their productivity morethan will the situation itself.than will the situation itself.

-- A bsenteeism, turnover, and job satisfaction are also A bsenteeism, turnover, and job satisfaction are alsoreactions to the individuals perceptions.reactions to the individuals perceptions.

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Summary (continued)Summary (continued) Individual Decision MakingIndividual Decision Making

-- Individuals think and reason before they act.Individuals think and reason before they act.-- Under some decision situations, people follow the rational decisionUnder some decision situations, people follow the rational decision- -

making model. However,making model. However, this doesnt happen very oftenthis doesnt happen very often

So, what can managers do to improve their decision making?So, what can managers do to improve their decision making?-- A nalyze the situation. A nalyze the situation.-- Be aware of biases.Be aware of biases.-- Combine rational analysis with intuition.Combine rational analysis with intuition.-- Dont assume that your specific decision style isDont assume that your specific decision style isappropriate for every job.appropriate for every job.-- Use creativityUse creativity- -stimulation techniques when possible.stimulation techniques when possible.